Silver (XAG/USD) Slides Below $30.25 as U.S. Data Signals Economic Uncertainty
Silver (XAG/USD) continues its bearish descent, trading near $30.17, down 0.79% on the day.
The metal remains trapped within a descending channel, signaling ongoing downward pressure. With the pivot point at $30.55 now acting as a strong resistance level, immediate barriers lie at $30.58 and extend to $31.44 and $31.85. A breakout above these levels is essential to halt the downtrend.
On the support side, silver finds immediate relief at $30.03, with deeper levels marked at $29.65 and $29.16. The Relative Strength Index (RSI) at 47.18 indicates neutral momentum but leans bearish.
The 50-day EMA, aligning with the $30.55 pivot, reinforces resistance, while the broader 200-day EMA sustains medium-term bearish outlooks.
U.S. Data and Fed Commentary in Focus
Market participants are closely monitoring a slew of U.S. economic indicators this week. ISM Manufacturing PMI is forecast at 47.7, signaling contraction in the manufacturing sector. Meanwhile, the JOLTS Job Openings report, expected to show 7.49 million openings, will provide insight into labor market resilience.
Midweek, ADP Non-Farm Employment Change is projected to decline to 166K from the previous 233K. Coupled with Federal Reserve Chair Jerome Powell’s anticipated comments on Wednesday, these events could influence silver’s near-term trajectory.
Investors are also keeping an eye on Friday’s non-farm payroll report, forecast at 202K, and the unemployment rate, which is expected to tick higher to 4.2%.
[[XAG/USD-graph]]
Silver Technical Outlook: Will Silver Break Its Downtrend?
Silver’s current technical setup suggests a continuation of the bearish trend unless key resistance levels are breached.
- Resistance Levels: Pivot at $30.55, with further hurdles at $30.58 and $31.44.
- Support Levels: Immediate support at $30.03, followed by $29.65 and $29.16.
- Momentum: RSI at 47.18 signals neutral but cautious sentiment; the 50-day EMA reinforces resistance.
A decisive move above $30.55 could indicate the start of a recovery, but failure to hold current support may accelerate selling pressure toward the $29.65 level. With the week’s economic calendar packed with high-impact events, volatility in silver prices is expected.
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